Transcript
Page 1: Role of FDI’s in india’s growth

Role Of FDI’s In India’s Growth

presented by:

PRASTUT MAURYA

AMRIT DEBBARMA

SURENDRA KUMAR

CHANDRA PRAKASH GOND

presented to:Prof. RAJEEV MATHEW

Page 2: Role of FDI’s in india’s growth

Introduction of FDI

FDI is a major source of external finance which means that countries with limited

amounts of capital can receive finance beyond national borders from wealthier

Countries.

Page 3: Role of FDI’s in india’s growth

Different Types of FDI

Horizontal FDI

Vertical FDI

Platform FDI

Page 4: Role of FDI’s in india’s growth

Total FDI Inflows from 2000 to 2013Financial year(April-March) Amount of FDI inflow (in US $ million)

2000-01 2,463

2001-02 4,065

2002-03 2,705

2003-04 2,188

2004-05 3,219

2005-06 5,540

2006-07 12,492

2007-08 24,575

2008-09 31,396

2009-10 25,384

2010-11 21,383

2011-12 35,121

2012-13 22,423

Total 1,84,954

http://dipp.nic.in/fdi_statistics/india_fdi_index.htm

Page 5: Role of FDI’s in india’s growth

Top 10 FDI Contributors in IndiaRank Country Cumulative inflows (April ‘00- Sep ‘13) US $ M

1. MAURITIUS 76,292

2. SINGAPORE 21,952

3. U.K. 19,432

4. JAPAN 14,920

5. U.S.A. 11,626

6. NETHERLAND 10,025

7. CYPRUS 7,185

8. GERMANY 6,018

9. FRANCE 3,730

10. U.A.E. 2,591

http://dipp.nic.in/fdi_statistics/india_fdi_index.htm

Page 6: Role of FDI’s in india’s growth

Sector attracting Highest FDIRank Sector Cumulative inflows (April ‘00- Sep ‘13) US $ M

1. Service sector 38,562

2. Infrastructure 22,765

3. Telecommunication 12,889

4. Computer hardware & software 11,958

5. Drugs & pharmaceuticals 11,391

6. Chemicals 9,256

7. Automobile industry 9,004

8. Power 8,049

9. Metallurgical 7,747

10. Hotel & tourism 6,796

http://dipp.nic.in/fdi_statistics/india_fdi_index.htm

Page 7: Role of FDI’s in india’s growth

FDI Is Permitted From 26% To 100 % Based On The Nature And Importance Of Industry. Before Economic Reforms In India The Economic Growth Was Very Slow, But After The New Economic Policy Reforms India Is Experiencing The Economic Growth Like A Galloping Horse.

Sector FDI Entry Route

A. Agriculture 1. Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisciculture, Aquaculture, Cultivation of vegetables & mushrooms and services related to agro and allied sectors 2. Tea sector, including plantation (FDI is not allowed in any other agricultural sector /activity)

100%

100%

Automatic

FIPB

B. Industry 1. Mining covering exploration and mining of diamond & precious stones; Gold, silver and minerals. 2. Coal and lignite mining for captive consumption by power projects and iron & steel, cement production. 3. Mining and mineral separation of titanium bearing minerals

100% 100% 100%

Automatic Automatic FIPB

www.irjcjournals.org

Page 8: Role of FDI’s in india’s growth

Sector FDI Entry Route

C. Manufacturing 1. Alcohol-Distillation & Brewing 2. Coffee & Rubber processing & Warehousing 3. Defence production 4. Hazardous chemicals and isocyanates 5. Industrial explosives -Manufacture 6. Drugs and Pharmaceuticals 7. Power including generation (except Atomic energy); transmission, distribution and power trading. (FDI is not permitted for generation, transmission & distribution of electricity produced in atomic power plant/atomic energy since private investment in this activity is prohibited and reserved for public sector.)

100% 100% 26% 100% 100% 100% 100%

Automatic Automatic FIPB Automatic Automatic Automatic Automatic

D. Services 1. Civil aviation (Greenfield projects and Existing projects) 2. Asset Reconstruction companies

49% 49%

Automatic FIPB

www.irjcjournals.org

Page 9: Role of FDI’s in india’s growth

Sector FDI Entry Route

3. Banking (private) sector

4. NBFCs: underwriting, portfolio management services, investment advisory services, financial consultancy, stock broking, asset management, venture capital, custodian, factoring, leasing and finance, housing finance, forex broking etc. 5. Broadcasting a. FM Radio b. Cable network; c. Direct to home; d. Hardware facilities such as up-linking, HUB. e. Up-linking a news and current affairs TV Channel 6. Commodity Exchanges 7. Insurance 8. Petroleum and natural gas a. Refining 9. Print Media a. Publishing of newspaper and periodicals dealing with news and current affairs b. Publishing of scientific magazines / speciality journals/periodicals 10. Telecommunications Basic and cellular, unified access services, national /international long-distance, V-SAT, public mobile radio trunked services (PMRTS), global mobile personal communication services (GMPCS) and others.

74% (FDI+FII). FII not to exceed49% 100%

20% 49% (FDI+FII) 49%

49% (FDI+FII) (FDI 49% FII 23%) 49% (PSUs).

100% (Pvt. Companies) 26%

100%

Automatic

Automatic

FIPB

FIPB

Automatic

FIPB (for PSUs). Automatic (Pvt.) FIPB FIPB Automatic up to 49% and FIPB beyond 49%.

www.irjcjournals.org

Page 10: Role of FDI’s in india’s growth

Top 10 FDI Cities in India1. Bangalore

2. Delhi

3. Pune

4. Mumbai

5. Chennai

6. Hyderabad

7. Kolkata

8. Ahmedabad

9. Nagpur

10.Jaipur

Page 11: Role of FDI’s in india’s growth

India Has Continually Attracted FDI From The World’s Major Investors. In 1998 And 1999, The Indian National Government Announced A Number Of Reforms Designed To Encourage And Promote A Favorable Business Environment For Investors.

INDIAN SCENARIO

Foreign Direct Investment (FDI) is permitted as under the following forms of investments.

1. Through financial collaborations.

2. Through joint ventures and technical collaborations.

3. Through capital markets via Euro issues.

4. Through private placements or preferential allotments.

Forbidden Territories:

FDI is not permitted in the following industrial sectors:

5. Arms and ammunition.

6. Atomic Energy.

7. Railway Transport.

8. Coal and lignite.

9. Mining of iron, manganese, chrome, gypsum, sulphur, gold, diamonds, copper, zinc.

http://www.mairec.org

Page 12: Role of FDI’s in india’s growth

Advantages Of FDI Growth in Economy

Job opportunity

Good Infrastructure

Competition

Availability of new technology

Increase in saving & investment

Contribution to exports

Page 13: Role of FDI’s in india’s growth

Disadvantages Of FDI Effect of local culture

Effect of natural environment

Threaten small scale industry

Exploitation of resources

Technology

Page 14: Role of FDI’s in india’s growth

BIBLIOGRAPHY

http://www.mairec.org

http://dipp.nic.in/fdi_statistics/india_fdi_index.htm

www.irjcjournals.org

www.fdi.gov.in

http://www.vccircle.com/500/news/india-fdi-inflow-dips-25-in-11-months-of-2010- 2013

http://en.wikipedia.org/wiki/Foreign_direct_investment

http://www.legalindia.in/foreign-direct-investment-in-indian-retail-sector- %E2%80%93-an-analysis

http://businesstoday.intoday.in/story/fdi-in-retail/1/20408.html

Page 15: Role of FDI’s in india’s growth

Top Related